Close:
Bulls pulled techs to new highs even though oil jumped up to 128. Up down volume was strong, but overall volume still within range. NYSE ADVDEC line went +2000, you don't argue with those days and go with the flow.
Now what? NDX initial support is the old highs (2050). SPX is still stuck at its 200 ema (1405), but the daily candle is bullish, almost engulfing four down days. Turning to the numbers I mentioned earlier, namely NQ 2054, 2064 and 2077, gives you an idea where to expect support/resistance to kick in. If NQ loses 2054.25, support is 2043.75, 2038 and 2034.75. I am using NQ (NDX futures) because techs are leading this rally. The major point of attack is the January gap close at 2077, for the COMP that would be 2602.69. Gap open and initial resistance will be 2571.57. The COMP did not quite make a new high, watch that level tomorrow (2551.47).
Semi-conductors are not making new highs and in fact, SMH daily closed with a Doji after stalling at the 50 week moving average (33.25, see weekly chart). That could change tomorrow thanks to NSM.
XLF (financials) is still stuck in the January gap.
Lots of bullishness in the air, with ISE equity closing the day just under 200, another very optimistic reading from call speculators. Bear market rallies get believers, bull market rallies get disbelievers. This bear is no different as the seeds of hope get planted on every move up. I am still troubled by bonds finding takers at TNX below 4.1%. Yields are not making new highs, but again that could change tomorrow if non-farm payrolls show better than 60K loss. The number could be revised next month anyway, but we have to deal with whatever the government gives us now. It's all a bit of a scam, we all know that, but price is price.
Top NDX/QQQQ stocks not making new highs are AAPL, RIMM, GOOG, MSFT and INTC. This is not necessarily bad, since it means the love is spreading around. But these stocks have a huge weight in NDX and they will have to wake up soon, or this rally will fizzle as quickly as it started. For now though, bulls are back in charge until proven otherwise.
Bulls pulled techs to new highs even though oil jumped up to 128. Up down volume was strong, but overall volume still within range. NYSE ADVDEC line went +2000, you don't argue with those days and go with the flow.
Now what? NDX initial support is the old highs (2050). SPX is still stuck at its 200 ema (1405), but the daily candle is bullish, almost engulfing four down days. Turning to the numbers I mentioned earlier, namely NQ 2054, 2064 and 2077, gives you an idea where to expect support/resistance to kick in. If NQ loses 2054.25, support is 2043.75, 2038 and 2034.75. I am using NQ (NDX futures) because techs are leading this rally. The major point of attack is the January gap close at 2077, for the COMP that would be 2602.69. Gap open and initial resistance will be 2571.57. The COMP did not quite make a new high, watch that level tomorrow (2551.47).
Semi-conductors are not making new highs and in fact, SMH daily closed with a Doji after stalling at the 50 week moving average (33.25, see weekly chart). That could change tomorrow thanks to NSM.
XLF (financials) is still stuck in the January gap.
Lots of bullishness in the air, with ISE equity closing the day just under 200, another very optimistic reading from call speculators. Bear market rallies get believers, bull market rallies get disbelievers. This bear is no different as the seeds of hope get planted on every move up. I am still troubled by bonds finding takers at TNX below 4.1%. Yields are not making new highs, but again that could change tomorrow if non-farm payrolls show better than 60K loss. The number could be revised next month anyway, but we have to deal with whatever the government gives us now. It's all a bit of a scam, we all know that, but price is price.
Top NDX/QQQQ stocks not making new highs are AAPL, RIMM, GOOG, MSFT and INTC. This is not necessarily bad, since it means the love is spreading around. But these stocks have a huge weight in NDX and they will have to wake up soon, or this rally will fizzle as quickly as it started. For now though, bulls are back in charge until proven otherwise.
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on Thursday, June 05, 2008 at 6/05/2008 07:37:00 PM.
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